Low price retailer Big W has reported a 0.9 per cent fall in sales during the first quarter of FY24, with parent company Woolworths Group citing lead time challenges and expansion of opening price points.
Big W total sales in Q1 hit $1.12 billion, down from $1.13 billion. Store sales fell by $4 million, while e-commerce sales dropped by $6 million.
According to Woolworths Group, items at the department store grew by 5.2 per cent on the prior year as new seasonal ranges offering more value resonated with customers, and transactions and items per basket increased on the prior year.
“However, item growth was offset by lower average selling prices due to a shift in mix towards lower priced items as part of the range renewals as well as some price reductions,” the company wrote in a trading update today. “Comparable sales decreased by 0.7 per cent.”
For clothing in particular, the group noted that Big W’s new spring/summer range was completely revamped, however, sales were impacted by timing of stock receipts together with shipping delays affecting availability during the quarter.
Woolworths Group CEO Amanda Bardwell the overall sales drop at Big W was also impacted by customers trading down to more affordable options.
“October sales to date were broadly in line with the prior year; however, trading over the rest of Q2 remains key,” she said.
Regarding the e-commerce sales drop, the online segment made up 9.3 per cent of total sales in the first quarter.
Including Big W Market, eCommerce gross merchandise value (GMV) increased by 32.1 per cent to $141 million with penetration of 12.2 per cent.
Everyday Rewards scan rates increased to 58.1 per cent in the quarter with Big W participating in the first group-wide collectibles campaign, Disney Worlds of Wonder.